The Zimbabwe corporate sector ethical decay which is reflected in a lot of company failures has not done any good to the image of the country and the drive to attract capital inflows.
Industry says it is regrettable that the country’s corporate terrain has been characterised by lack of accountability, abuse of depositor’s funds and deliberate disregard of sound business practices.
The business community hopes the newly launched code on corporate governance will usher in a new era and set the solid foundation for revival of the economy.
Professionalism, integrity and accountability are common words one finds on most corporations’ mission statements and core values yet actions by the corporate leaders have in most cases proven otherwise.
Despite being vital ingredients for companies’ success, good business practices have been sidelined by most corporates.
Talk of corporate scandals and mismanagement of funds over the past few years and names such as Premier Service Medical Aid Society (PSMAS), National Oil Company of Zimbabwe (NOCZIM), Zimbabwe Broadcasting Corporation (ZBC) mismanagement and Grain Marketing Board (GMB) come to mind.
For PSMAS clients, the effect of the ethical decay and mismanagement are still haunting them as they are not getting value for their money.
The situation at PSMAS is not unique as many of public and private institutions continue to suffer due to failure to adhere to good business practices.
The country has for the past decade experienced a fair share of corporate scandals from the First National Building Society and ENG scandals of the early 2000’s to the most recent PSMAS, ZBC salarygate scandals.
According to industry, lack of sound corporate governance has done more harm to the attractiveness of the local economy.
Failure to adhere to sound corporate governance by one of the country’ biggest medical aid, PSMAS, led to members failing to get value for their money.